JGB futures are bid in early afternoon.........>

JGBS: JGB futures are bid in early afternoon dealing, last trading 25 ticks

higher vs. settlement and registering fresh intraday highs in the process.

- The move is likely being facilitated by a couple of factors:

- 1) The BoJ noted that it will re-examine economic & price developments at the

next meeting, which could pave the way for further easing measures.

- 2) No declaration of a "reverse twist" operation at the BoJ, which we viewed

as a low probability outcome ahead of the meeting as recent market dynamics have

allowed longer dated JGB yields to move away from cycle lows in recent sessions.

- 10-Year yields last having a look back below -0.20%, just, at -0.203, as the

5-10 Year sector of the curve maintains its outperformance on the day.